Opportune Time to Invest for Turkish Citizenship
Does the fall in the Lira present an opportune time to invest in real estate to gain citizenship in Turkey? The Turkish Lira has seen a significant decline against the US Dollar over the past few years. Since early 2021, the Lira has weakened by approximately 360%, making it an opportune moment for foreign investors holding USD. In February 2021, 1 USD was around 7.4 Turkish Lira, but today, it’s valued at approximately 33.93 TRY per USD. This dramatic shift presents a unique opportunity for those looking to invest in Turkish real estate through the Citizenship by Investment (CBI) programme.
The Dollar’s Current Advantage
To put things into perspective
- In February 2021, 400,000 USD would have been worth 2.96 million Turkish Lira.
- Now, 400,000 USD is worth around 13.57 million Turkish Lira.
This means you get more value for your dollar when investing in property now than you would have just a few years ago. In fact, more than four times what it was previously. For foreign investors, this weakening of the Lira provides an excellent chance to acquire premium real estate at a lower relative cost.
Why Did the Lira Depreciate?
Several factors have contributed to the decline of the Turkish Lira, including:
- Unconventional monetary policies: The Turkish central bank has cut interest rates despite rising inflation, leading to a loss of confidence in the currency.
- Political instability: Geopolitical tensions and shifts in government policies have further pressured the Lira.
- Global economic conditions: Like many emerging markets, Turkey has faced economic challenges exacerbated by the global pandemic, which contributed to capital outflows and currency depreciation.
These factors have led to the Lira’s current state, creating an opportunity for foreign investors to buy Turkish assets at relatively low prices.
What Could the Future Hold?
While predicting currency movements is speculative, it’s worth considering the potential upside. If the Lira were to return to earlier levels seen in 2021, there could be significant gains for those who invest now. For instance, if you invest in property today and sell in a few years, a stronger Lira could translate into considerable profits when converted back into USD. Though no one can predict with certainty, this adds a layer of potential upside to your investment.
Overview of the Turkish CBI Programme
Turkey’s Citizenship by Investment programme offers foreign investors the opportunity to acquire Turkish citizenship by investing at least $400,000 in real estate. The key features of the programme include:
- Only need to retain the property for 3 years.
- Fast-tracked citizenship for the investor and their family (spouse and children under 18).
- Full citizenship rights, including visa-free or visa-on-arrival access to over 125 countries.
Why Invest in Turkish Citizenship Now?
- More Value for Money: As the Lira has depreciated, your USD goes further in Turkey. You can acquire more valuable property for the same amount of dollars, making it an ideal time to invest.
- Potential for Future Gains: Should the Turkish Lira strengthen in the coming years, investors could benefit from capital appreciation when selling their properties in USD terms.
With the potential for currency appreciation and the current value of the Lira, now might be the perfect time to explore the benefits of Turkey’s CBI programme. For more information, please get in touch with our experts.
